Summit Wireless Technologies Inc (NASDAQ: WISA) is making a run for the top in the market this morning, and for good reason. The company announced that its WiSA Wave program is bringing record amounts of consumers into its ecosystem. Here’s what’s happening:
Skip to What You Want to Read
- Summit Wireless Technologies Announces WiSA Wave Success
- Management Commentary
- Creating an Ecosystem Is Key to Tech Dominance
- What Analysts Think About WISA Stock
- Final Thoughts
Summit Wireless Technologies Announces WiSA Wave Success
In the press release, Summit Wireless Technologies said that the WiSA Wave program, which provides customized digital marketing campaigns and access to the Association’s robust consumer database and analytics, has driven significant consumer web traffic.
The WiSA Wave program was officially launched on September 1, 2020, and has seen compelling success since. In fact, it’s expected that the program will result in more than 1 million website visitors this year.
Here’s a quick rundown of what the program has led to so far:
- Q4 Traffic Growth. In the fourth quarter, more than 185,000 consumers visited websites for WiSA or brand and retailers. That’s a whopping increase from 99,500 in the third quarter of 2020 and 47,000 in the second quarter.
- Returning Visitors. 20% of all Association web traffic was returning visitors during the critical holiday shopping period between November 25 and December 15.
- Shopping. More than 61,400 consumers clicked through to retailer’s sites in order to continue their shopping.
- Subscriptions. More than 2000 consumers are being educated on WiSA Certified products and wireless home cinema components daily.
Check out the ads that are part of the program for yourself:
- Benefits of true surround sound in 3.1/5.1 formats
- WiSA Ready™TVs with LG, Axiim, Klipsch and Platin solutions
- Smart Surround Systems in a Box with Klipsch, Enclave Audio and Platin Audio
- Home Theater TV Systems Hisense and Platin
- Gaming solutions with Xbox, Axiim and Platin
In a statement, Tony Ostrom, President of WiSA, had the following to offer:
As smart TV sales continue to grow, more immersive content flows into our homes from multiple providers, and consumers build out their nests for more quality time at home, WiSA is positioned to help its members like LG, Hisense, Klipsch, Enclave Audio, and Savant educate and connect with a growing number of enthusiasts.
Our audience is interested in simplified, powerful, immersive home cinema systems and WiSA Wave aids the Association in further expanding into a consumer-facing cornerstone of wireless home theater entertainment by presenting members with user-friendly digital marketing capabilities.
Creating an Ecosystem Is Key to Tech Dominance
In the technology industry, we’ve seen it time and time again. When a strong ecosystem is created, strong growth is to follow. Two of the biggest examples I can give you of ecosystem creation leading to success include:
- Apple. Apple Inc (NASDAQ: AAPL) is the dominant player in the smartphone industry after taking an early lead of BlackBerry years ago. The company created an ecosystem that allowed for interconnectivity between cell phones and computers. Today, that ecosystem is far larger and Apple is one of the largest companies in the world.
- Google. Google, now Alphabet Inc (NASDAQ: GOOG) took a play out of Apple’s playbook, creating an ecosystem of its own. Only this time, the ecosystem was geared toward online capabilities, rather than hardware. Google is yet another one of the biggest tech companies in the world today as a result.
Well, Summit Wireless Technologies is creating an ecosystem of its own.
Today, WiSA collaborates with more than 70 consumer electronics companies, providing consumers with precise direction for purchasing home cinema audio systems. From there, these systems are interconnectable, providing a plug and play immersive sound experience for consumers.
It is one of very few brand names that will likely ever be minted on the faces of televisions and speakers alongside the brand of the manufacturer, and both consumers and businesses are taking note.
The company continues to drive interoperability from multiple brands and product categories, creating an ecosystem that’s simply hard to ignore. While we are still pretty early in the game, you’ll find the WiSA logo on televisions, transmitters, and speakers, all which leverage the capabilities of WiSA Certified products and have become part of what could become a vast ecosystem with home entertainment at its core.
The bottom line is that in tech, ecosystem creation works, and WiSA is the only company doing so in home entertainment, and proving to be incredibly successful at doing so.
What Analysts Think About WISA Stock
According to TipRanks, there are currently two analysts covering WISA stock, and their opinions are positive. Both analysts rate the stock a Buy, with no Holds or Sells to speak of.
In terms of price targets, the low target is $3.50 per share with a high at $5.00 per share and a median of $4.25. However, it’s important to note that these price targets are largely outdated. With the recent news from the company surrounding growth in brands joining the WiSA Association, the launch of the Association’s first branded product, and continued consumer adoption, the WiSA ecosystem is far more valuable than these price targets suggest. As such, I’m expecting to see revisions upward relatively soon.
The bottom line here is simple. If you were to get in on the ground level when Apple was creating an ecosystem around smartphone technology, or when Google was creating an ecosystem around everything online, your returns would have been mind blowing.
Summit Wireless Technologies is on the ground level of doing the same thing in the world of home entertainment. With the home entertainment market projected to reach nearly $12 billion this year, WISA stock is one that you should be paying very close attention to.
Disclaimer. The author is not a broker dealer or financial advisor. The opinions expressed above are those of the author and may not reflect the opinions of the outlet on which this article was published. CNA Finance has a monetary relationship with Summit Wireless Technologies.